Alternative to Bridging Loan

ClaireMoore

Hi, first post on here, hoping someone can help! I currently live down in Kent, near Canterbury. However, I'm originally from Glasgow and my mum still lives there. She has been desperately lonely since I left, and I would love her to move closer to me. However, due to the huge difference in property prices, she has a very limited budget and homes within her price range rarely come up. She is anxious to sell her current property without being sure she will be able to get another. The only option may be to get a bridging load, so that if a house came up in Kent she could use that to buy it and then sell her house and pay off the loan. However, I don't like these loans, as the APR is ridiculously high, even for a months loan, and with her being a retiree with limited funds, this just seems very risky. Does anyone know of any other options that may allow her to get a short term loan to buy a property until she sells her own?

G_M

As you say, bridging loans are expensive. seems like a mad idea, especially as there's no guarantee how long it woul take for her to sell and pay off the loan.

Why doesn't she do what most people do, and link her purchase and sale together?

In the good old days you could take out multiple 0% credit cards and buy using cash from that, but you'd be pushed to raise enough credit nowadays.

Selling and renting is an option, or how about selling and staying with you while she looks around and buys?

hazyjo

Most people will expect to wait a reasonable amount of time for her to find somewhere. Once she knows what she can get for her property, she'll know what she can spend and start looking seriously. She can always pull out if necessary, although don't let the buyers spend a penny until the chain is complete.

As above, I wouldn't touch bridging loans with a bargepole in this instance.

Add lots of rightmove alerts in the areas she'd consider. You can draw search areas if easier.


Jx

WillowCat

The easiest thing would be for her to sell, put her furniture in storage for a while and stay with you, assuming you have the space of course.

If you don't she could sell and rent for a while - would be minimum of six months. Although expensive, if she gets a one bed flat (again furniture could be in storage) she may be eligible for housing benefit as the money from her sale can be disregarded for six months if she is actively looking to buy.

davidmcn

hazyjo wrote: »

Most people will expect to wait a reasonable amount of time for her to find somewhere. Once she knows what she can get for her property, she'll know what she can spend and start looking seriously. She can always pull out if necessary, although don't let the buyers spend a penny until the chain is complete.

Note she's selling in Scotland, where things are normally expected to happen a bit faster than in England - buyers may well want her to conclude a contract well before she's in a position to do so for her purchase. Might not be a problem if she explains upfront what her plans are, but could eliminate some potential buyers.

hazyjo

davidmcn wrote: »

Note she's selling in Scotland, where things are normally expected to happen a bit faster than in England - buyers may well want her to conclude a contract well before she's in a position to do so for her purchase. Might not be a problem if she explains upfront what her plans are, but could eliminate some potential buyers.

Damn, the penny didn't drop! Of course, thanks Does add a trickier element - I'm all for honesty so would be very upfront about it.

Jx

deFoix

The idea of a bridging loan is madness. No sorry moronic.

Even selling up and living in a b&b would be a better idea.